West Kensington leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in West Kensington will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in West Kensington with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in West Kensington can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Kensington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Joshua, came critically near to the eighty-year threshold with the lease on his basement apartment in West Kensington. In buying his flat two decades ago, the unexpired term was of minimal concern. Luckily, he realised he needed to take steps soon on Extending the lease. Joshua arranged for a lease extension just in the nick of time in January. Joshua and the freeholder in the end settled on the final figure of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £950.
In 2012 we were contacted by Dr Noah Phillips who, having owned a studio apartment in West Kensington in July 1998. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in West Kensington with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected annually. The lease finished on 12 May 2090. Taking into account 65 years remaining we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.
An example of a Lease Extension decision for a West Kensington residence is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.